The credit rating of Irish Republic has been downgraded by a rating agency of the country, S&P. S&P has expressed its fears that the troubled banking sector of the country by growing costs could push down the finances of the government to lower stage.

The S&P wants the government of Ireland to spend 90 billion euros to help out the banks and it is 10 billion euros higher than the previous estimate of 80 billion euros.

The official debt agency of the country is also in support of S&P. This cut of the S&P has been the lowest since 1995. An additional injection of 10 billion euros was given to the Anglo Irish Bank earlier in this month.

According to the forecast of S&P, the net government debts will increase to 113% of the GDP in the year 2010. This rise would be much higher than the rise of 64% in the year 2009.

As per S&P the rise would be the highest in all of the Eurozone countries which would well above the projections for Spain of 65% and Belgium of 98%.